PNB detects a Massive fraud of RS 11,000 CR

Mumbai Feb 15: In a Major move Punjab national Bank had detected a major fraud.PNB has said that it has identified a major fraud of Rs 114 billion by jeweler Nirav Modi, his maternal uncle Mehul Chinubhai Choksi, and other relatives through a clutch of companies they own.

The bank had also said that 2 employees of the bank were involved in the scam and has sought the help of central government.The bank has said that "its core banking system was bypassed to raise payment notes to overseas branches of other Indian banks, including Allahabad Bank, Axis Bank, and Union Bank of India, using the international financial communication system, SWIFT."



The bank had written a letter to other banks and said that " letters of undertakings (LoUs) are were opened in favour of branches of Indian banks for import of pearls for a period of one year, for which the Reserve Bank of India (RBI) guidelines stipulate a total time period of 90 days from the date of shipment.This stipulation was overlooked by overseas branches of Indian banks that are also required to follow the RBI guidelines. There is clear criminal connivance of group companies of Nirav Modi and Gitanjali Gems with our branch official and also, apparently, with officials of overseas branches of Indian banks".